Giordano International Limited (Stock code: 709)

August 27, 2009 (Thursday)

2009 Interim Results

August 27, 2009 Giordano 2009 Interim Results 2

Group Financial Highlights(Continuing operations)

For the six months ended June 30, 2009 (in HK$ millions) 2009 YOY Change

Turnover 2,003 - 14.5%

Mainland China Retail & Distribution turnover 776 - 3.5%

Gross profit 965 - 20.2%

Gross margin 48.2% - 350 bps

Operating profit 66 1 - 73.0%

Operating margin 3.3% - 710 bps

Profit attributable to shareholders 48 1 - 77.6%

Earnings per share (in HK cents) 3.2 - 77.6%

1 1H08 profit inclusive of HK$33M China reinvestment tax credit and HK$17M gain on disposal. Excluding non-recurring items, 1H09 operating profit declined by 68.7% and profit attributable to shareholders declined by 70.7% YOY.

August 27, 2009 Giordano 2009 Interim Results 3

Group Financial HighlightsFor the six months ended June 30 2009 2008

Cash inflow from operating activities (in HK$ millions) 172 201 1,2

Inventory turnover on sales 3 25 days 28 days 1

Net cash & bank balances (in HK$ millions) 585 454 4

Current ratio 2.5x 2.3x 4

Interim dividend (in HK cents) 2.0 4.5

Special interim dividend (in HK cents) - 2.0

Total interim dividend (in HK cents) 2.0 6.5

Earnings per share (in HK cents) 3.2 13.9 1

Payout ratio 62.5% 46.8%1 Continuing and discontinuing operations combined 2 Inclusive of HK$33M China reinvestment tax credit3 Inventory held at period end divided by turnover times number of days for the period 4 As at December 31, 2008

August 27, 2009 Giordano 2009 Interim Results 4

Retail & DistributionFor the six months ended June 30, 2009 (in HK$ millions) 2009 YOY Change

Turnover 1,833 - 13.0%

Comparable store sales - 9.2% N/A

Gross profit 917 - 20.7%

Gross margin 50.0% - 480 bps

Operating profit 26 - 87.3%

Operating margin 1.4% - 830 bps

Total number of outlets 1,528 + 20 stores

August 27, 2009 Giordano 2009 Interim Results 5

Giordano & Junior 86% (84%) 1

BSX4% (5%) 1

Giordano Concepts3% (5%) 1

Giordano Ladies6% (6%) 1

Retail & Distribution turnover by brandFor the six months ended June 30, 2009

1 YOY figures in brackets

Others1% ( 0%) 1

August 27, 2009 Giordano 2009 Interim Results 6

Giordano & Junior 1H09 1H08 Remarks

Turnover (in HK$ millions) 1,569 1,756 – Gross margin began to recover in 2Q09 from new, higher margin products

– Operating profit declined largely due to Mainland China

– 12 outlets added in China and 11 closed outside China in 1H09

Comp store sales 1 - 8.4% + 0.1%

Operating profit (in HK$ millions) 49 203

Number of outlets 1,393 1,341

Giordano Ladies 1H09 1H08 Remarks

Turnover (in HK$ millions) 114 128

– Gross margin lowered by discounting but began to recover in 2Q09

– High rental reduced operating margin– Five outlets closed in 1H09

Comp store sales 1 - 10.0% + 5.8%

Operating profit (in HK$ millions) 1 13

Number of outlets 40 41

1 In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009 Giordano 2009 Interim Results 7

Giordano Concepts 1H09 1H08 Remarks

Turnover (in HK$ millions) 64 108– Product missteps hurt sales and

margins– 7 non-performing stores closed in

1H09– Reposition as high end menswear

brand beginning F/W09

Comp store sales 1 - 27.0% - 0.1%

Operating loss (in HK$ millions) (19) (1)

Number of outlets 24 24

BSX 1H09 1H08 Remarks

Turnover (in HK$ millions) 76 111

– Gross margin increased by 240 bps

– Operating loss reduced by half– 10 outlets closed in 1H09

Comp store sales 1 - 10.3% + 4.2%

Operating loss (in HK$ millions) (6) (11)

Number of outlets 64 96

1 In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009 Giordano 2009 Interim Results 8

Mainland China42% (39%) 1

Hong Kong & Macau, 20% (20%) 1

Taiwan, 15% (16%) 1

Singapore, 8% (9%) 1

Australia, 4% (5%) 1

Other self-operated markets 2 11% (11%) 1

1 YOY figures in brackets2 Includes Malaysia, Thailand, Indonesia and Japan

Retail & Distribution turnover by marketFor the six months ended June 30, 2009

August 27, 2009 Giordano 2009 Interim Results 9

Mainland China 1H09 1H08 Remarks

Turnover (in HK$ millions) 776 804 – Half of business from Southern and Eastern China hard hit by downturn

– Heavy discounting in 1Q09 to clear stocks

– High operating cost from 2008 expansion reduced operating margin

– Added three outlets in 1H09

Comp store sales 1 - 9.2% + 11.8%

Operating profit (in HK$ millions) 33 177

Number of outlets 912 859

Hong Kong (& Macau)

1H09 1H08 Remarks

Turnover (in HK$ millions) 366 431– Gross margin began improving in 2Q09– High rentals squeezed operating margin– Closed two outlets in 1H09

Comp store sales 1 - 10.8% + 3.8%

Operating profit (in HK$ millions) 10 27

Number of outlets 80 86

Performance review : Group markets

1 In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009 Giordano 2009 Interim Results 10

Taiwan 1H09 1H08 Remarks

Turnover (in HK$ millions) 269 334 – Heavy discounting in 1Q09 to clear stocks

– Gross margin began improving in 2Q09

– Closed 13 outlets in 1H09

Comp store sales 1 - 9.5% + 2.2%

Operating loss (in HK$ millions) (4) (2)

Number of outlets 179 200

Singapore 1H09 1H08 Remarks

Turnover (in HK$ millions) 147 189 – Heavy discounting in 1Q09 to clear stocks

– Gross margin began improving in 2Q09

– Closed five outlets in 1H09

Comp store sales 1 - 4.9% - 13.8%

Operating loss (in HK$ millions) (3) (4)

Number of outlets 46 54

Performance review : Group markets

1 In local currency for self-operated outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009 Giordano 2009 Interim Results 11

South Korea 1H09 1H08 Remarks

Turnover (in HK$ millions) 355 452 – Local currency turnover increased by 4.3%, gross margin up 50 bps (better products)

– 1H09 profit contribution: HK$9 million (1H08: HK$4 million)

– On Jun 30, 2009, the Group held 48.5% in Giordano South Korea

– Two outlets added in 1H09

Comp store sales 1 + 0.1% + 2.1%

Operating profit (in HK$ millions) N/D N/D

Number of outlets 169 178

Middle East 1H09 1H08 Remarks

Turnover (in HK$ millions) 225 247 − 1H09 profit contribution: HK$1 million (1H08: HK$6 million)

− On Jun 30, 2009, the Group held 20.0% in Giordano Middle East

− Three outlets added in 1H09

Comp store sales 1 - 13.6% + 17.0%

Operating profit (in HK$ millions) N/D N/D

Number of outlets 172 153

Performance review : Non-consolidated markets

1 In local currency for outlets which were open for the full 6 months in each of the two fiscal years under comparison

August 27, 2009 Giordano 2009 Interim Results 12

Resume expansion in Mainland China. Target to add at least the same number of stores as 2H08 (ie 50) and support expansion program with increased A&P

Inventory levels are healthy (ITOS = 25 days as at 30 June 2009). Focus on rebuilding margins in all markets

Gross margin in Hong Kong, Taiwan and Singapore began trending up June and July

Continue to collaborate with suppliers on low FOB products Develop differentiated products with higher prices and margins New 5,500 sq m design centre in Dongguan opened in August with 200 d

esign and product development and sourcing staff

2H09 growth & profit drivers

August 27, 2009 Giordano 2009 Interim Results 13

Number of outlets

As at June 30, 2009As at

Dec 31, 2008

YTD ChangeGiordano

& JuniorGiordano Concepts

Giordano Ladies BSX Others Total

Mainland China 869 14 14 15 - 912 909 + 3

Hong Kong & Macau 44 5 9 22 - 80 82 - 2

Taiwan 141 3 11 24 - 179 192 - 13

Singapore 44 - 2 - - 46 51 - 5

Australia 52 - - - - 52 56 - 4

Malaysia 64 1 2 - - 67 67 -

Indonesia 83 1 2 3 7 96 97 - 1

Thailand 90 - - - - 90 87 + 3

Japan 6 - - - - 6 7 - 1

Retail & Distribution 1,393 24 40 64 7 1,528 1,548 - 20

South Korea 143 - - 26 - 169 167 + 2

Middle East & India 168 1 - 3 - 172 169 + 3

Philippines 44 1 1 3 - 49 50 - 1

Others 75 - - - - 75 72 + 3

Export & Licensing 430 2 1 32 - 465 458 + 7

TOTAL 1,823 26 41 96 7 1,993 2,006 - 13

Giordano International Limited (Stock code: 709)

Q&A

2009 Interim Results